Stocks in New York remained steady on Tuesday morning as investors awaited a new wave of U.S. inflation data as well as Apple Inc.’s new product lineup. Futures on the S&P 500, Nasdaq 100, and the Dow Jones Industrial Average all remained stagnant during the early session. In Europe, the Stoxx 600 index edged 0.2% higher.
Markets are awaiting Wednesday’s consumer price index report to determine how much further the Federal Reserve will need to take its interest rate hikes in an effort to cool inflation. The central bank is set to convene next week for its September policy meeting. The CPI report is expected to show that inflation accelerated by 0.6% in August.
“If we do see potentially a more sticky inflation number than the 0.6% expected by economists or 0.2% on core, I would expect to see the bond market start to potentially price in another rate hike before the end of the year, potentially as early as November,” Anthony Doyle, head of investment strategy at Firetrail Investments Pty Ltd, explained.